A monthly Nasdaq Composite (INDEXNASDAQ:.IXIC) chart from this morning's Daily Market Report [subscription required] shows a second test of the low of the high bar month from March 2000:
Click to enlarge
There is also a confluence of some interesting geometry. I started with trend line A (green) and paralleled a trend line from the 2010 and 2011 lows, which also ties to the 2002 and 2009 lows.
Trend line A coincides with the March high, suggesting the recent Nasdaq Composite high is a return rally test here in July. The pattern since March mirrors the four-month interval of the 2008 to 2009 bottom. As above, so below? Moreover, the pattern high in 2000 was a March high followed by a return rally into July.
Additionally, last week's 4,478 recovery high on the Nasdaq Composite ties to a possible time-and-price July square-out. Reducing the number to 448 shows that early July is 90 degrees square 448.
See the Square of 9 Chart below:
Click to enlarge
If you covered up the name and time frame and were told the above chart were a daily chart of a highflier, I suspect most of you would be sellers, recognizing a possible A-B-C retracement to prior highs.
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